NAIROBI, Kenya- Kenyan startup Wasoko and Egyptian firm MaxAB have finalized an all-stock merger, setting the stage for a powerful new entity in the continent’s digital economy.
The merger, long anticipated since the two companies entered negotiations last December, is poised to drive fintech innovation and expand their market reach across several key African countries.
The merger between Wasoko and MaxAB marks a significant consolidation in Africa’s e-commerce sector.
While the companies have yet to reveal their unified brand name, their combined operations are expected to continue in Egypt, Kenya, Morocco, Rwanda, and Tanzania—regions where both startups have already established strong customer bases.
By integrating their resources and expertise, the new entity aims to enhance operational efficiency and tap into the lucrative fintech sector to diversify revenue streams.
Wasoko CEO Daniel Yu highlighted the shift in strategy, emphasizing a focus on profitability over gross merchandise value (GMV).
“We are now making a net contribution margin or net profit per order, which wasn’t the case during the GMV-maximizing period,” Yu explained.
The merger brings together two of Africa’s most dynamic e-commerce leaders. Daniel Yu of Wasoko and Belal El-Megharbel of MaxAB will serve as co-CEOs, ensuring that both companies’ visions are fully integrated into the new entity.
The board of directors will include these co-CEOs along with key investors such as Silver Lake and Tiger Global, reflecting a balanced governance structure.
Contrary to earlier speculations, both Wasoko and MaxAB hold equal stakes in the merged company, affirming that this is indeed a “merger of equals.”
The merged entity will manage 16 subsidiaries, with operations slated to expand significantly across the continent.
The CEOs are confident that this collaboration will unlock new opportunities, especially in the fintech space, where the companies plan to introduce integrated apps for e-payments, credit financing, and digital services .
The merger is not just about combining e-commerce operations; it’s a strategic pivot towards fintech. With a merchant base of 450,000 and a customer reach of 65 million, the new company is well-positioned to capitalize on Africa’s growing demand for financial services.
The Egyptian market, in particular, is expected to be a major revenue driver, with plans to fully leverage the financial services arm by December this year.
MaxAB’s success in the fintech space is evident—last year alone, the company generated $180 million from its financial services, outpacing its e-commerce revenue.
